The Path to Financial Re-Regulation

Rebuilding trust will be the core challenge for Europe, the European Commission, global leaders, and the financial services industry over the next five years. The task won't be easy, for it requires striking a balance between regulation to correct the failings that we have witnessed and the need to preserve dynamic and innovative banks and markets.

BRUSSELS – Today, some people are saying that the storm of the financial crisis is subsiding. I am not so sure. Interbank lending rates are slowly coming down, but they are still far higher than they should be, share prices continue to be volatile, and conditions in global markets remain fragile.

More worryingly, we are seeing the effects on the real economy across Europe, in the United States, and now further afield. GDP is contracting. Industrial production is falling at a record-high pace.

So where do we go from here? The answer is that we have to rebuild trust. That is the core challenge for Europe, the European Commission, global leaders, and the financial services industry over the next five years. It will not be easy.

To continue reading, please log in or enter your email address.

Registration is quick and easy and requires only your email address. If you already have an account with us, please log in. Or subscribe now for unlimited access.

required

Log in

http://prosyn.org/gTQv8Ty;